We have the Linear-Stages Theories which consist of Rostows Stages of growth

model and The Harrod- Domar Growth Model.

Rostows stages of growth model is one of the first growth theories which was
proposed by an American economic Historian, Walt Rostow in the early 1960’s. He
argued that economies must go through a number of developmental stages towards
greater economic growth and that these stages followed a logical sequence. Wherein,
each of stages could only be through the completion of the previous stage.
So we have the Traditional Society, Pre-take-off stage, Take-off, The drive to
maturity, and lastly the stage of mass consumption
In the Traditional Society there is a lack of development. People in traditional
societies establish their lives around their families. Having a limited size of capital
stock and of low quality results in very low labor productivity and little surplus of
output left to sell in domestic and overseas markets. Which we can see how they
are dominated by agriculture and barter exchange, and where science and
technology are not understood or exploited.
The second stage in the model is the Pre- take-off stage or the Pre-
conditions take off. Here agriculture becomes more mechanized and more
output is traded because there is development of education and an
understanding of science, its application to technology and transport. Savings
and investment grow although they are still a small percentage of national
income (GDP) because there is emergence of entrepreneurs and simple banking
system.
The third stage is called the Take-off stage. In this stage we can see a positive
growth rates in particular sectors and where organized systems of production
and reward replace traditional methods and norms. Political and social
institutions.
The climax stage is the drive to maturity where there is a vast movement
towards a diverse economy. That moves from being dependent on factor inputs
for growth towards making better use of innovation in many sectors.
The final stage is the stage of mass consumption, where citizens enjoy high
and rising consumption per head, and where rewards are spread more evenly.
Thus the industry here become more diverse.

The Harrod - Domar Growth Model on the other hand is a functional economic
relationship in which the growth rate of gross domestic product (g) depends directly on
the national net savings rate (s) and inversely on the national capital-output ratio. It is
often referred to as the AK model because it is based on a linear production function
with output given by the capital stock K times a constant, often labeled A.

If we define the capital-output ratio as k and assume further that the national net
savings ratio, s, is a fixed proportion of national output and that total new
investment is determined by the level of total savings, we can construct the
following simple of economic growth:
1. Net savings (S) is some proportion, s, of national income (Y) such that we
have the simple equation: S = sY
2. Net investment (I) is defined as the change in the capital stock, K, and can be
represented by change in K, I = change in K,
3. but because the total capital stock, K, bears a direct relationship to total
national income or output which is the Y, as expressed by the capital-output
ratio, it follows that
K/Y = c or we have the change in K/change in Y or finally:
We have derived the formula: change in K = c change in Y
4. Finally, because net national savings S, must equal net investment, we can
write this equality as S=I
5. Therefore, it follows that we can write the “identity” of saving equals
investment shown by equation 4. S=Sy = c change in Y = change in K = I
6. or simply we can denote it as sY = c change in Y
7. Dividing both sides of equation 6 first by Y and then by c, so we can obtain the
following expression: change in Y/Y = Savings/Y
8. Equation 7 is also expressed in terms of gross savings (s to the power of g)
9. Wherein the growth rate is given by this equation “the change in Y/ Y = (s to
the power of g) divided by c minus the rate of capital depreciation